Allana Potash: Why The Unique Characteristics Of This Project Make It Survive My Stress Test
- Allana's share price got hit by a declining potash price after Uralkali left the potash-cartel.
- As its deposit has unique characteristics, according to my calculations the project remains viable at the current ultra-low potash price.
- The partnership with ICL will prove to be extremely important, as ICL will offer technical expertise and financial backing.
- Debt financing is expected shortly, which will allow Allana to hit the ground running.
- My near-term target price is $0.52, increasing to $0.75 when funding for the project will have been secured. As such, Allana is a strong buy.